Author Topic: Need advice dealing with debt  (Read 2787 times)

Trevor

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Need advice dealing with debt
« on: Jun 01, 2009, 12:32:28 PM »
Hi all,

I have about £17,000 total debt across 3 credit cards and bank overdraft.  I am fortunate in that (at the moment) I will be able to afford to pay the debt off over time, although it is going to take a while.

I am looking for options on how I can reduce the amount of time it takes to pay off the debt.  To me the obvious ones are:

reduce the amount of debt.
reduce the amount of interest.
increase the amount payed per month.

Obviosuly the third option is for me to do myself but I am hoping someone can offer advice on how to go about achieving the first 2 options?

Also:
I have tried a few times recently to apply for a zero percent interest (for limited time) credit card to which I can transfer part of the debt to.  Each application has been unsuccessful.  I have also tried to apply for a consolidation loan which was also unsuccessful.  This puzzles me as I have never missed a payment so should be good for the loan/credit card.  I have only ever applied online, not inperson in a branch for example.

Can anyone explain why I might be having difficulties applying for loans/credit cards and what I can do to improve my chances of being successful?


Thanks Trev

Trevor

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Re: Need advice dealing with debt
« Reply #1 on: Jun 08, 2009, 03:56:20 PM »
Anyone?

Tom

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Re: Need advice dealing with debt
« Reply #2 on: Jun 10, 2009, 01:41:56 PM »
Hello Trev,
Have you tried to get a copy of your credit file, are you aware the more credit you apply for the more searches show up on your credit file and will put credit companies off lending to you.
To get a better credit rating, i think it is just a case of maintaining regular payments
Are you making minimum payments to your creditors every month cos it is unlikely you will hve any interest stopped unless you are having problems in paying you bills

brian121

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Re: Need advice dealing with debt
« Reply #3 on: Jun 10, 2009, 01:59:15 PM »
hi trevor
i am in a similar position to you as well. I managed to get one of my cards written off. it can be done, but you get a lot of calls from their call centre, as they don't like anyone challenging their agreements. let me know if you need help. Brian

Trevor

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Re: Need advice dealing with debt
« Reply #4 on: Jun 10, 2009, 07:08:07 PM »
Hi guys, thanks for the repsonses.

Yep, I haven't missed any payments - always paying min though on all but 1, which I am paying £450 a month off.

Brian, how did you get a card written off???

StepintoLife

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Re: Need advice dealing with debt
« Reply #5 on: Jun 11, 2009, 09:11:47 AM »
I am looking into a couple of these companies that claim to be able to write off your debts, I've found one that will actually buy your debt for a fee. Problem is if you can't afford the fee it doesn't help.
Due to the economic situation at the moment and banks not being very helpful or simpathetic (I won't bore you with all of my thoughts on this one) but I have recently come accross a post on another site with many links to other websites that give a real insight to why we are all (and I do mean all) are in such a mess.
Personally I have made a decission to pay off all my debt (including my mortgage) in as short a time as possible, this way I solve the problem permanently. I have nothing to do with debt management or finance but I have put together a plan based around my travel business that is working for me and a lot more people.


Tom

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Re: Need advice dealing with debt
« Reply #6 on: Jun 11, 2009, 01:03:51 PM »
hello again,  ;D

WOW 450pm payment seem alot when you are paying min only on the others.  I do know if you are behind with payments at some point you can offer to pay a reduced amount as a full and final but as you previsouly mentioned this could reflect on your credit file.

I do personally think these companies that say they will write off your debts are a scam and have heard from friends in the business that it is being reviewed and any current cases are on hold. so beware cos there was someting on tele the other night that someone paid them upfront and only got one debt written off which cost him more in the long run that his actual debts...

I am trying to sort out this new DRO thing, just needs that funds ha ha .. you say you owe about 17k, are you paying a loan? have you checked that balance recently cos if its 2k less you could fit the criteria for a DRO..  you can have about 300 quid in assets (I think) and a car of up to 1k be be eligible.  after a year the rest of ya debt is written off...   fingers crossed i can get the 90 quid to pay for it..
good luck anyways

Trevor

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Re: Need advice dealing with debt
« Reply #7 on: Jun 11, 2009, 04:20:20 PM »
Thanks for the info guys.  I pay £450 off the card with the highest APR.

I don't think I'll qualify for a DRO.   >:(